Costa Rica continues to grow as a top global destination for holidaymakers around the globe, with 2024 seeing record-breaking numbers of international arrivals. Costa Rica has also seen fast growth in the vacation rental market, with many visitors opting to stay in AIRBnBs instead of hotels. The vacation rental market has seen the total number of private Airbnbs increase consecutively for 37 months. July of 2024 saw 34,895 vacation rentals listed that month. Costa Rica's leading vacation rentals share several key characteristics that make them stand out: prime locations, personalised services, thoughtful design, and effective marketing, to name a few. These elements contribute to the success of a vacation rental in a market that's becoming increasingly competitive yet also full of opportunity.
Exceptional Locations, Premium Services and Amenities:
The vacation rentals with the most considerable returns are unsurprisingly in Costa Rica's top tourist destinations. Of the top 30 performing AIRBnBs in Costa Rica over the last 12 months, eleven are in Tamarindo, seven are in Jaco, four are in Flamingo and Potrero, two are in Santa Teresa, and the rest are spread across Manuel Antonio, Nosara, Papagayo, Bahia Ballena, Playa Grande and Playas del Coco. All the top locations are located on the Pacific Coast, with 4 out of 5 being part of the top 5 largest vacation rental regions in Costa Rica.
Costa Rica real estate investment has seen increasing demand in these areas specifically, with other emerging markets becoming more relevant as the tourism industry grows year after year. In the first two quarters of 2024, the ICT, the Insitituto Costarricense de Tourismo, reported in their 2024 report, an all-time high of 1,670,892 international arrivals (after six months via airport), a 12.18% increase from 2023.
The location within the larger area is also important when looking at a Costa Rica investment property. Vacation rentals with ocean views (or views of volcanoes, mountains, and valleys) and direct access to a beach always demand a premium. All the top 30 vacation rentals have ocean views or direct beach access.
The leading vacation rentals in Costa Rica set themselves apart by providing high-quality services and amenities and securing relationships with local hotels and companies that guests can use. These features include a private pool, a hot tub, bikes to get around, great music systems and TVs, and other amenities, which are all found in the top-performing vacation rentals.
What The Average Daily Rates Look Like (ADRs):
As all of the top-performing vacation rentals in Costa Rica are luxury villas and resort-style homes, the average daily rates (ADRs) of these rentals are very high compared to the national average. The ADR of a vacation rental in the top 30 highest-returning vacation rentals in Costa Rica is $2,678 (the national average has been $255 over the last 12 months), ranging from $1,410 to $4,140.
The average size of these high performing Costa Rican vacation rentals is 8.37 bedrooms, making the average daily rate per bedroom $320.03. These figures also suggest that luxury vacation rentals are better valued than the higher-end hotels in Costa Rica. Hotels will charge roughly $850 a night with amenities such as a gym, pool, and breakfast. Top-end vacation rentals often include a "house mum" in the total price, who will cook most meals, a private pool, additional privacy and more intimate security.
Design and Architecture
Many top vacation rentals are built purposely to function as vacation rentals for at least 3 quarters of the year. They are designed to be modern, aesthetically pleasing, and functional as vacation rentals. Most will have a minimalist design with simple geometric lines and open space. These vacation rentals will also incorporate a lot of glass for the natural light and integrate the inside and outside areas. Costa Rica is known for its strong position regarding the conservation of nature and not disturbing the country's natural beauty, hence the heavy use of nature and integrating nature into the design of the building. Architects will incorporate nature by including trees as centrepieces in a courtyard, water at the entrance of the property, and use stone and wood for the façade.
Sustainable architecture: Built with eco-friendly materials and designed to minimise environmental impact, these rentals embody Costa Rica's commitment to sustainability.
Modern and traditional elements: A fusion of contemporary design with traditional Costa Rican elements, such as local wood and stone, creates a unique aesthetic.
Indoor-outdoor living: To properly utilize Costa Rica’s natural beauty and climate, many homes and vacation rentals are designed to connect the indoor and outdoor spaces, offering open floor plans, large windows, and outdoor living areas.
Conclusion:
The combination of exceptional locations, strong value, premium services, and stunning design ensures that guests of these vacation rentals in Costa Rica enjoy a truly unique and memorable experience. Analysis of these top vacation rentals suggests that the best place to invest in Costa Rica would be in any of the towns or cities where top vacation rentals already exist, suggesting demand exists in that location. The average size of a top Airbnb is roughly eight rooms, and it can accommodate around 14 people. Pools and great accessibility to the beach are currently very important, but will this trend continue? As many tourists visit multiple locations when they visit Costa Rica, will we start to see more luxury villas emerging in locations other than beach towns?
Source: Data on vacation rental performance provided by Costa Rica Investments, AIRDNA, and ICT.
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Advisors, consultants, and custodians of investments in Costa Rica
This data doesn't include VRBO listings or shared accommodations.
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